My instinctive response is that moving to a TH from a SFH with preschoolers is penny-wise but pound foolish. Where are they going to ride bikes? In the parking area? Where are they going to throw balls? You'll say that there is a beautiful park right down the street but, at least for the next few years, you'll have to be prepared to escort them to said park while they play. That's not always convenient when you're just trying to get laundry done or clean the bathrooms. Yes, it takes upkeep to have a lawn but what does that mean, really? 40 minutes every week to mow and sticking a sprinkler out on it? You never promised anyone a rose garden. Plus, those are the moments when kids learn how to plant little flowers, how to empty the mower bag, they look for worms while you're mowing and you all end up spending some good time together throughout the 40 minutes.
I also think sharing walls with neighbors when you have young children would be a major PITA. Every fight, noise, temper tantrum, or nightmare might be heard and hated by your neighbors (or vice-versa). This also goes for dragging groceries and kids through a parking area and up a bunch of steps to get everything inside. Now, if you get a TH with a garage, that problem would be alleviated. Finally, what about the deck/balcony? They are usually right up against each other and not enjoyable at all. Do you want your neighbors out their smoking and drinking right next to your kids while you're just trying to grill some burgers?
For the PP that has high school children and is downsizing, I think it makes for a wonderful idea. Your children are almost grown and already into their various activities. They don't hang out and ride bikes or play catch in the yard anymore (or if they do, they can take themselves to the park down the street).
Call me cranky but that's my .02